Parliament yesterday passed Press Trust Reconstruction (Amendment) bill which reduces the percentage of profits the trust uses for social projects from 66 percent to 50 percent.
The new bill also enhances the penalty for contravention of the Press Trust Reconstruction Act that remained static since the enactment of the act in 1995.
Speaking to the press, Minister of Justice Titus Mvalo said the bill also seeks to empower the Minister to amend schedules to the act, other than deed of variation and also make better provision for qualifying criteria for persons to be appointed as trustees.
“The press trust reconstruction amendment bill has a number of major features. One, it is reducing the percentage for distribution. At the moment, Press Trust distribute 60 percent of profits it receives as dividends from its companies for social projects such as school desks clinics and so on.
“So the bill is saying let us reduce that percentage from 66 percent to 50 percent so that Press Trust can retain a bit more of the money for the investment. We are now moving to emerging sectors in our economy like mining so it can also take part in that kind of opportunities. So it is to release money to Press Trust which it can use for investment through its companies and other investment ventures,” said Mvalo.
According to Mvalo, the bill is also trying to comply with governance principles as at the moment Press Trust trustees remain on the board for a single time lasting six years and a maximum of two terms.
Therefore, the bill wants them to only save five years and if they come again they should save another five years.
Mvalo added that the bill has reduced age limit of trustees to 30 years which is good for young people because now they can get on the board at much younger age and grow with it.
After the passing of the bill the person to be on the board now is required to hold a minimum qualification of bachelor’s degree.
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